Executive Office of the President - Recovery Act Investments in Broadband - Embargoed Until Release on 12-17-2009

8/14/2019 Executive Office of the President - Recovery Act Investments in Broadband - Embargoed Until Release on 12-17-2

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EXECUTIVE OFFICE OF THE PRESIDENTNATIONAL ECONOMIC COUNCIL

RECOVERY ACT INVESTMENTS IN BROADBAND:LEVERAGING FEDERAL DOLLARS TO CREATE JOBS AND CONNECT AMERICA

DECEMBER 2009

One key to strengthening education, entrepreneurship, and

innovation in communitiesis to harness the full power of the Internet,

and that means faster and more widely available broadband.

- President Barack Obama, September 21, 2009

EMBARGOEDUNTIL6:00AMESTDECEMBER17,2009


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EXECUTIVE SUMMARY

Broadband touches nearly every aspect of the U.S. economy, providing Americans withunprecedented opportunities in employment, education, health care, entrepreneurship, and civicparticipation. For millions of Americans without adequate access to broadband, however, the

possibility of falling behind in the knowledge-based economy is real. Recognizing this concern,the American Recovery and Reinvestment Act provided $7.2 billion to stimulate economicgrowth and create jobs by expanding the deployment and adoption of broadband services. TheAdministration is now announcing the first of the Recovery Act broadband awards.

By leveraging federal dollars, the Administrations Recovery Act investments willexpand broadband access throughout the nation and provide more Americansin both urban andrural areaswith the opportunity to succeed in the digital age. Among the awards areinvestments in middle-mile networks, which connect unserved or underserved communities tothe Internet backbone. These investments will maximize the impact of federal dollars byencouraging private service providers to build connections to homes and businesses using the

publicly funded infrastructure. In rural areas and areas with low population density that aredifficult to reach, Recovery Act awards will fund investments in the last mile of service, whichwill help provide connections to homes and businesses that would otherwise go without high-speed Internet access.

Recovery Act investments will also leverage federal dollars by targeting communityinstitutions that provide critical services in urban and rural areas, including schools, libraries, andhospitals. Middle-mile projects will connect these institutions directly to broadband services,helping to improve the quality of their services and exposing new users to broadbandopportunities at work, school, and other venues. Funding for public computer centers, includingthose in urban and suburban areas, will promote digital literacy among the new generation of

workers through one-time investments in equipment, hardware and software, and basic training.

These critical broadband investments will create tens of thousands of jobs and stimulatethe economy in the near term. By providing broadband-enabled opportunities to previouslyunderserved communities, these investments will also lay the foundation for long-term regionaleconomic development and foster a digitally literate workforce that can compete in the newknowledge-based economy.

Here, in the country that invented the Internet, every child should

have the chance to get onlinethats how well strengthen Americascompetitiveness in the world.

- President Barack Obama, December 6, 2008


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RECOVERY ACT INVESTMENTS IN BROADBAND:LEVERAGING FEDERAL DOLLARS TO CREATE JOBS AND CONNECT AMERICA

Introduction

President Obama is committed to bringing the transformative power of broadbandInternet access to all Americans. He believes that broadband investment will help stimulateeconomic growth and create jobs while connecting more Americans to high-speed Internet andhelping to address our health care, education, and energy challenges. The Presidents broadbandinitiatives will help ensure that all Americans have access to affordable broadband services andthe opportunity to develop digital skills so they can compete and succeed in the worldsexpanding knowledge-based economy. In order to close the broadband gap in America andrealize President Obamas vision, the Administration is announcing the first grant and loanawards for Recovery Act projects that expand the deployment and adoption of broadbandservices throughout America.

The American Recovery and Reinvestment Act provides $7.2 billion to expandbroadband services, create jobs, and stimulate economic growth. The projects receiving the firstRecovery Act broadband awards will leverage federal dollars by stimulating private sectorinvestment and connecting critical community institutions to broadband. Targeted federalinvestments will expand broadband access throughout the United States and provide moreAmericans with the opportunity to succeed in the digital age.

Recovery Act broadband investments will support the deployment of infrastructure formiddle-mile connections that link unserved and underserved areas of the country to theInternet backbone. The new infrastructure will make it cost-effective for private service

providers to enter these areas and build last-mile local connections to homes and businesses.In the most rural parts of America, strategic Recovery Act investments in last-mile connectionswill foster new economic opportunities, much as rural electrification did 70 years ago. Theseconnections will allow small businesses to reach national and international markets, enhance thequality of life in rural communities, and provide rural residents with the types of education andhealth care resources available to their counterparts in the rest of the country.

Recovery Act awards will also help to establish or enhance broadband access atcommunity anchor institutionsschools, libraries, hospitals, and other institutions that provideimportant public services. Funding to connect and upgrade these community hubs, includingpublic computer centers in urban and suburban areas, will maximize the reach of federal dollars

by allowing thousands of workers, students, and job seekers to experience the benefits ofbroadband. These investments will help build the new generation of digitally skilled workersand increase broadband adoption in homes and businesses.

Of the Recovery Act funds, $4.7 billion is allocated for the Broadband TechnologyOpportunities Program (BTOP). BTOP grants will support projects that expand the deploymentof broadband infrastructure into unserved and underserved areas, enhance the capacity of public


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computer centers, and support the sustainable adoption of broadband service by users. Thegrants for this program, administered by the U.S. Department of Commerce, will also supportprojects that provide access, equipment, and training at anchor institutions, which offer outreachand assistance to vulnerable populations.

Because of the importance of broadband to rural communities and rural economicdevelopment, the Recovery Act also allocates $2.5 billion for the Broadband Initiatives Program(BIP). Administered by the U.S. Department of Agriculture, BIP will award grants, loans, andgrant/loan combinations to support projects that deploy broadband infrastructure into rural areas,helping to ensure that rural businesses, communities, and citizens have the same opportunitiesafforded by broadband as all other Americans. These grants and loans will provide enhancedconnectivity to critical rural facilities such as hospitals, schools, and community colleges.

Box1. BroadbandBasics

Consumersobtainbroadbandservicefromlastmileprovidersthatofferbroadband

connectionsthroughoneofseveraltechnologies:cablemodemserviceprovidedbyacable

televisioncompany;digitalsubscriberline(DSL)serviceprovidedbyatelephonecompany;

wirelessaccessprovidedbyasatellitecompany;orotherformsofwirelessservicethat

enableInternetaccessonmobiledevicesandlaptopcomputers,suchascommercial

mobileservice,WiFi,orWiMAXservice. ForagrowingnumberofAmericans,highspeed

broadbandisalsoavailablefromprovidersoffibertothehome.

Lessthanadecadeago,mostconsumersconnectedtotheInternetviaanarrowbanddial

upconnectionoveratelephoneline. Today,broadbandprovidestransformativebenefits

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phoneandbrowsetheWebatthesametime. Software,music,andvideodownloads

occurinsecondsratherthanhours,andbusinessescantakeadvantageofrealtimetwo

wayteleconferencing. Broadbandinschools,universities,andlibrariessupportsdistance

learning,research,andrealtimevideoinstruction. Inhospitals,doctorsoffices,and

communityclinics,broadbandcanfacilitateremotemedicalconsultations,patientcare,

andresourcesharing,reducingtheneedforpatientstotravellongdistancestoreceive

medicalcare. Federal,state,andlocalgovernmentsusebroadbandtoprovidee

governmentservicestocitizens.


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Recovery Act Investments in the Middle Mile Will Spur Private Investment

Economic analysis shows that the private sector may under-invest in the middle mile,

leaving many communities without adequate access to broadband services and opportunities.Underinvestment is not a problem in communities where the facilities of the last-mile providerare a short distance from the Internet backbone, since private providers can build the middle mileat low cost. In other cases, however, the distance from the community to the Internet backbonemay be so large that the cost of upgrading middle-mile facilities to these communities is too high

for a private provider to make a profit. This is especially true in rural communities, whereconsumers and businesses are often unable to obtain broadband services because of absent orinadequate middle-mile infrastructure. Although these communities may have limited Internetaccess at low speeds, without high-speed connections they cannot stream audio and video, runbusinesses online, take advantage of telemedicine, or enroll in distance learning courses. Withmore and more applications being created for broadband connections, those without high-speedInternet are losing online opportunities rapidly.

Strategic investments in the middle mile, including the Recovery Act awards announced

today, leverage federal dollars to bring broadband services to communities that would otherwise

be left behind. The Recovery Act investments in middle-mile infrastructure will lower the cost

of providing last-mile services to these communities, attracting private service providers andsparking new broadband connections throughout the community. Importantly, the awards comewith requirements for open interconnection, meaning that grantees must make anyinfrastructure funded with taxpayer dollars available for interconnection with other networks.This specification enables Internet service providers to enter the market and connect homes andbusinesses by building out last-mile connections from the publicly funded middle-mile network.


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Project Spotlight: Under the firstwave of Recovery Act awards, theNorth Georgia Network Cooperativewill receive a $33.5 million grant to

deploy middle-mile infrastructureto eight counties in the impoverishedAppalachian region of northernGeorgia and North Carolina. The260-mile fiber-optic ring is expectedto deliver broadband speeds andreliability never previously availablein the area. The fiber ring willdirectly connect 245 communityinstitutions, including public schools,colleges and universities, hospitals,

and government facilities. Theproposed fiber ring also includes2,600 interconnection points thatwill allow Internet service providersto build out last-mile connections toend users. The middle-mile ring willprovide broadband services with greater speeds and reliability to the strugglingAppalachian communities of northern Georgia, creating jobs and introducingunprecedented opportunities for economic development. This project will also deliver last-mile service to approximately 24,000 households in previously inaccessible andunaffordable areas.

The Recovery Act broadband awards also stretch federal dollars by encouraging private

investment in the middle-mile infrastructure itself. Most of the broadband awards require eithermatching grants or a loan component to ensure financial sustainability and to maximize theleverage of federal spending. In addition, many applicants are public-private partnerships thatpool resources and expertise from businesses, local governments, and non-profits in thecommunity.

Project Spotlight: Two of the middle-mile infrastructure awards announced today will goto public-private partnerships. One of these awards is a $39.7 million grant to buildmiddle-mile infrastructure in rural upstate New York. The grantee is a partnership betweenION, a for-profit company based in the capital of Albany, and the Development Authorityof the North Country (DANC), a public benefit corporation. These entities have pooledtheir resources and knowledge of upstate rural markets to develop a regional broadbandplan that will immediately connect more than 100 community institutions, includinglibraries, state and community colleges, and health clinics. The project will also enablelast-mile connections to 250,000 households and 38,000 businesses. In combination withION and DANCs existing broadband networks, this new middle-mile network will help

Figure5.NorthGeorgiaNetworkCooperative

ProposedMiddleMileNetwork


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facilitate service to a majority of rural areas in New York, as well as parts of Pennsylvaniaand Vermont.

.

Box

2.

Middle

Mile

That

Works:

A

Historical

Example

from

Southern

Virginia

InJanuary2004,theCommonwealthofVirginiaformedtheMidAtlanticBroadband

Cooperative(MBC)tohelpaddressthelackofaffordabletelecommunications

infrastructureandcreatejobsinruralsouthernVirginia. With$6millioninseedmoney

fromtheU.S.DepartmentofCommerceandamatchingstategrantof$6million,MBC

builta700milemiddlemilefiberopticnetworkintwoyears. Withthehelpof

additionalstategrantmoney,thenetworkisnowmorethan800mileslongandcontinues

togrow,runningthroughoutSouthernVirginiaandstretchingacross60businessand

technologyparks.

MBCis

an

open

access,

non

discriminatory

wholesaler

whose

members

provide

last

mile

enduserservicestohomesandbusinessesinruralsouthernVirginia. TheCooperatives

60plusmembersincludebothsmallandlargetelecomandInternetserviceproviders.

TheseproviderspayfeesforaccesstoMBCsmiddlemilenetwork,whichtransportsdata

betweentheendusersandalargeInternetinterconnectionpointinnorthernVirginia.

Openinterconnectionrequirementshavefacilitatedlastmileconnectionstohomesand

businessesataffordablerates.

Developmentofthemiddlemilenetworkhaspromotedregionaleconomicdevelopment

insouthernVirginiaandsurroundingareas. Ofthe$10.5millionspentbyMBClastyear,

79percent

of

this

money

was

spent

on

companies

headquartered

in

Virginia;

32

percent

wasspentwithVirginiacompanieswithoperationalheadquartersinsouthernVirginia;

and25percentwasspentwithcertifiedsmall,women,andminorityfirmsregisteredin

theCommonwealth. Overthepastthreeyears,MBCsmiddlemilebroadbandnetwork

hascontributedtobringingthousandsofjobsandhundredsofmillionsofdollarsin

privatesectorinvestmenttosouthernVirginia.

Source:MidAtlanticBroadbandCooperative2009AnnualReportandwww.mbc

va.com/about_mbc/index.html.


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Targeting Community Anchor Institutions in Urban and Rural Areas

Community anchor institutions are facilities such as schools, libraries, hospitals, andpublic safety agencies that provide critical services and reach large portions of the communityeach day. Providing broadband services at these institutions can maximize federal impact by

improving the delivery of services, reaching thousands of new users, and encouraging broadbandadoption in both urban and rural areas.

As part of middle-mile comprehensive community projects, Recovery Act investments will

help connect community anchor institutions, improving the delivery of critical services and

immediately connecting thousands of people to broadband. One of the goals of the RecoveryAct middle-mile investments is to connect the anchor institutions within a given communitydirectly to the backbone, with an eye toward improving the performance and effectiveness ofthese institutions and reaching large numbers of people. For example, health care providers willbe able to monitor patient health remotely, consult with other medical professionals, and sharemedical records in real-time. Broadband connections in libraries will enable students to conduct

research and locate information and allow workers to identify and apply for jobs. Schools andcolleges will be able to stream audio and video content from other institutions, provide andreceive instruction through online distance-learning programs, and facilitate training and skilldevelopment for adult learners.

Connection of anchor institutions can also help spur broadband adoption. Workers inhospitals, libraries, and government facilities will experience the benefits of broadband at work,and students will use broadband for homework, research, and communication at school. Theseexperiences with broadband and improvements in digital skills can spur broadband demand athome and attract last-mile providers to the area.

Project Spotlight: The Biddeford Internet Corporation, a public-private partnershipbetween service providers and the University of Maine, will receive a $25.4 millionRecovery Act grant to construct middle-mile infrastructure across rural Maine. Theproject, known as the Three Ring Binder, will include three fiber-optic rings extendingfrom the most rural and disadvantaged areas of the state, to the coast, and through themountainous regions of western Maine. The 1,100-mile network will pass more than 100communities with 110,000 households, 600 anchor institutions, and a number of last-mileproviders. The project will connect 10 University of Maine campuses and outreach centers,three community colleges, and 38 government facilities. Broadband access will help theseanchor institutions better serve students, workers, clients, and citizens. According toBiddeford, the New England TeleHealth Consortium and the Franklin County Healthcare

Network will use this middle-mile infrastructure to implement advanced health carenetworks as part of an effort to improve delivery of rural health care services.

For urban and suburban areas in particular, Recovery Act investments in public

computer centers and sustainable adoption will leverage federal dollars by facilitating digital

literacy among a new generation of users. Many underserved communities are located in urbanand suburban areas where broadband is available but adoption rates are low because of


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insufficient exposure to the benefits of broadband or lack of affordability. The Recovery Actincludes funding for computers, equipment, networking, hardware and software, and basic digitaltraining at public computer centers such as libraries and community colleges. Through theseone-time investments, federal funding will make broadband more accessible and affordable tomore Americans, expose a new generation of workers and consumers to the benefits of

broadband, help to improve American competitiveness in the world, and bolster digital skills inlow-income and disadvantaged communities. Exposure to broadband benefits will motivatemore Americans to use broadband as a tool to improve career and education decisions andenhance their quality of life. It will also encourage more users to adopt broadband in theirhomes. The Administration is also planning ways to measure the effects of investments in publiccomputer centers.

Project Spotlight: Through a Recovery Act Public Computer Center grant, the ArizonaState Library Archives and Public Records will help 84 public libraries in the state enhanceservice to their communities with additional public-access computers in their institutions.Located in areas where citizens have very limited access to computers or the Internet, the

expanded capacity at these libraries will provide residents with access to a wide range ofonline resources, including government, business, and health information, while alsofacilitating training for job searches and skill development. The libraries will partner witha variety of government, not-for-profit, and tribal organizations in serving residents. TheArizona State Library expects the computer centers to serve more than 75,000 users perweek and more than 450,000 residents in total.

Creating Jobs and Enhancing Economic Development

Recovery Act investments in broadband deployment and adoption are designed to createjobs immediately. These investments can also facilitate long-term, sustainable economicdevelopment by bringing communities into the digital age. Broadband access service canprovide small and large businesses alike with the ability to reach new and distant markets,introduce new business models to market and sell their goods and services, and drive innovationin business processes. For individuals, broadband can facilitate access to distance education, jobopportunities, and skills training.

[Investing in broadband] is a first step toward realizing President Obamas

vision of a nationwide 21st-century communications infrastructure one that

encourages economic growth, enhances Americas global competitiveness,

and helps address many of Americas most pressing challenges.

- Vice President Joseph Biden, July 1, 2009


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Recovery Act broadband investments will create tens of thousands of jobs in construction

and other sectors, helping to put struggling communities back to work quickly. Recovery Actbroadband projects must be substantially completed within two years of obligation. In this shortperiod of time, they will create tens of thousands jobs and produce an immediate impact on localeconomies. Broadband investments will create many types of jobs throughout the nation. The

most prevalent are construction jobs: the broadband service provider hires dozens or hundreds ofworkers to lay fiber in the ground or build towers for aerial connections. Before and duringconstruction, workers are also needed for the engineering, design, and planning aspects ofmiddle-mile and last-mile infrastructure. During construction and after completion, employeesin the field manage installation, repair towers and lines, and interact with customers. Broadbandservice providers also create jobs indirectly through the purchase of equipment for broadbandconnections, such as networking equipment and construction machinery.

Evidence indicates a strong impact of broadband on economic development. A 2006study by the Economic Development Administration in the U.S. Department of Commerceconcluded that broadband access does enhance economic growth and performance, and the

assumed economic impacts of broadband are real and measurable.

1

A more recent academicstudy finds that federal broadband investments will generate significant employment effectsthrough regional economic development and induced innovation, also known as networkexternalities.2 Consistent with prior research, the study finds that federal Recovery Actbroadband investments could create hundreds of thousands of jobs over a four-year period bystimulating new businesses, market transactions, and innovative industries in previouslyunderserved areas.

Recovery Act programs are targeted to maximize economic development opportunities.The Administration is directing Recovery Act investments to middle-mile connections andcommunity anchor institutions in order to bring broadband to thousands of workers andconsumers immediately and spark the spread of broadband services to homes and businessesthroughout those communities. Open interconnection requirements make it easier for last-mileproviders to interconnect their networks with the newly upgraded middle-mile infrastructure.

Project Spotlight: Through Recovery Act funding, the Consolidated Electric Cooperative(CEC) will receive a grant/loan combination of $2.4 million to construct a 166-milemiddle-mile network in North Central Ohio. The project will bring major-city connectivityinto underserved areas and connect anchor institutions and the facilities of wireless Internetservice providers. Lack of available fiber has been a barrier to economic development inthe North Central Ohio area, but through this project CEC will be able to sell fiber tocustomers and to providers planning to offer last-mile service to the area. In addition, theCEC network will connect all 16 of its electric substations to support its Smart Gridtechnology initiative, facilitating the implementation of cutting-edge green technology andsupporting economic development in the region.

1Measuring Broadbands Economic Impact. U.S. Department of Commerce, Economic DevelopmentAdministration. National Technical Assistance, Training, Research and Evaluation Project #99-07-13829. February2006.2 Estimating the Economic Impact of the Broadband Stimulus Plan. Raul Katz, Columbia Business School, andStephan Suter, Polynomics AG. February 2009.


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Access for All: Bringing the Last Mile to Rural America

President Obama believes that all communities, whether urban or rural, should haveaccess to the many opportunities afforded by broadband Internet service. In many parts of the

Box3. BroadbandEconomics101

Manyofthebenefitsoffederalbroadbandinvestmentcanbeexplainedusingbasic

economicprinciples. Oneimportantbenefitiswhateconomistscallconsumersurplus,

thedifferencebetweenthepriceaconsumeriswillingtopayforaserviceandtheprice

theconsumeractuallypays. Withoutfederalinvestmentinmiddlemileinfrastructure,

certainareasofthecountrymaybeunservedorunderservedbecauselackofgoodmiddle

mileinfrastructuremakesthecostofprovidinglastmilebroadbandserviceprohibitively

high. Federalinvestmentinthemiddlemilelowersthecostofprovidinglastmileservice,

encouragingprivateInternetserviceproviderstoentertheseareasandofferbroadband

servicestohomesandbusinesses. Ifanenduserinanewlyservedcommunitywouldhave

beenwillingtopay$120permonthforbroadbandservicebutonlyhastopay$70per

month,thentheendusergetsaconsumersurplusof$50. Furthermore,thelastmile

providermakesaprofit,whichiscalledproducersurplus. Thesumofconsumerand

producersurplusistheeconomicvaluecreatedbytheproject.

RecoveryActbroadbandprogramshavebeendesignedtomaximizeeconomicsurplus. The

programstargetunservedandunderservedcommunitiesbecauseinstallingorupgrading

themiddlemilewillhavethegreatestimpactonlastmileprices(andthusonconsumer

surplus)intheseareas. Inaddition,openaccessandinterconnectionrulesfacilitatelast

milenetworksviainterconnectionpointswiththemiddlemileinfrastructure,helpingto

ensurethateverypotentialclientinthecommunitythatwantstosubscribecandosoata

pricethatcorrespondstothecostofprovidingbroadbandservice.

Investmentinunservedandunderservedareas,includingpubliccomputercentersinurban

areas,

also

creates

economic

value

over

the

longer

term.

These

investments

expose

first

timebroadbanduserstothebenefitsandusesofbroadband,suchasjobsearchand

training,distancelearning,telemedicine,andaudioandvideostreaming. Exposureto

theseopportunitiescanproduceamoredigitallyliterateworkforceandpromote

broadbandadoptionathome.

Thejobcreationeffectsofmiddlemileinvestmentalsoextendbeyondtheinitial

constructionofthemiddlemile. Tobuildlastmilenetworksinnewlyconnectedareas,

localInternetserviceprovidersmusthireemployeesandinvestinplantandequipment. In

thisway,RecoveryActspendingspursadditionaleconomicactivitythatwouldnothave

occurredintheabsenceoffederalinvestment. TheaimofRecoveryActprojectsisto

maximizethe

economic

value

of

each

dollar

of

federal

spending.


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country, strategic investment in the middle mile is the best use of federal dollars. Middle-mileinvestment can bring down the cost of last-mile service enough that private service providers canprovide broadband services to homes and businesses at a reasonable price.

In highly rural areas of the country, however, low population density may mean that

middle-mile investment is not enough to make last-mile service cost effective for privateproviders. For these communities, the government has an important role to play in bringingbroadband service to homes, businesses, and rural anchor institutions. Just as President FranklinRoosevelt made a commitment seven decades ago to bring electrification to all communities inAmerica, the Obama Administration is taking steps to ensure that rural areas are not left out ofeconomic opportunity.

Recovery Act investments in rural last-mile connections will have significant economic

development benefits for those areas. Broadband access can contribute to the economicdevelopment of rural areas, providing new connections to education and health care resourcesand access to new markets and business practices. Rural businesses can use broadband service to

find new markets, make online retail sales, and engage in business-to-business transactions.Broadband can increase teleworking opportunities for rural residents, make government servicesmore accessible and convenient, and reduce travel and out-of-work time for patients throughtelemedicine. A recent study by the U.S. Department of Agricultures Economic ResearchService found that broadband Internet availability in rural areas had positive effects on jobcreation, the formation of new businesses, and the retention and growth of existing smallbusinesses.3

For rural areas that have been heavily dependent on one industry, changes orenvironmental factors in that industrysuch as a drought or a drop in the price of acommoditycan affect a large proportion of the economic production in the community.Broadband-enabled employment is valuable in these areas because it allows for jobs that areflexible and untethered to local economic conditions. This buffer provides a safety net for ruralareas when local conditions are unfavorable. At the jobs forum convened by President Obamathis month, Angie Selden, CEO of Arise Virtual Solutions, emphasized the importance of ruralbroadband, noting that 23 percent of Arises U.S.-based home agents reside in communitieswith populations smaller than 15,000 people.

Urban areas also benefit when rural citizens have access to broadband. Bringingbroadband to rural areas can open up previously inaccessible markets to businesses in urban andsuburban areas. Governments can engage more effectively with rural citizens who havebroadband and improve service provision to these areas. Rural broadband access will also allowfriends and relatives of people in rural areas to communicate more easily with their ruralcontacts.

Project Spotlight: The Administration will award a last-mile grant to Rivada Sea Lion, anAlaska Native Corporation, to provide 4G wireless high-speed broadband Internet serviceto approximately 30,000 residents in 53 unserved, subsistence level communities in

3Broadband Internets Value for Rural America. U.S. Department of Agriculture, Economic Research ReportNumber 78. August 2009.


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southwestern Native Alaska. Rivada will design, engineer, and construct a multi-mode 4Glast-mile remote network that spans 90,000 square miles and connects homes andbusinesses as well as anchor institutions such as health clinics, schools, and tribalgovernment facilities. By using wireless and satellite technology rather than copper orfiber, the project will provide the first broadband services to these Native Alaskan

communities at relatively low cost.

Project Spotlight: The Administration will also award a last-mile grant to the BrettonWoods Telephone Company in New Hampshire for a fiber-to-the-home project. Thisproject will provide broadband to end users in the Bretton Woods community, a remotearea in northern New Hampshire with a tourism-based economy. It will pass 386households, 19 businesses, and six community anchor institutions, allowing all potentialcustomers to receive two-way broadband service of up to 20 Mbps. The improved networkis expected to encourage tourism and promote development of the local Bretton Woodseconomy.

Conclusion

President Obama believes that all Americans should have access to broadband and thetransformative opportunities it affords. Broadband services allow individuals to access newcareer and educational opportunities. They help businesses reach new markets and improveefficiency. They support struggling communities that seek to attract new industries. And theyenhance the governments capacity to deliver critical services. For all these reasons, theAdministration has targeted its Recovery Act investments in broadband to spur privateinvestment throughout the nation, connect critical community institutions to broadband services,and encourage digital literacy and adoption in urban and rural areas.

Federal investments in the middle milewhich connects the Internet backbone to localnetworkswill encourage private investment in last-mile connections to homes and businesses,facilitating regional economic development in previously underserved areas and openingunprecedented opportunities in employment, education, health care, and entrepreneurship.Recovery Act investments will also connect and equip community anchor institutions, includingpublic computer centers that provide broadband access and training to disadvantagedcommunities in urban and suburban areas. And targeted last-mile investments in rural areas willfacilitate connections to homes and businesses that would otherwise be left behind in the digitaleconomy.

These critical investments will create tens of thousands of jobs, stimulate the economy inthe near term, and help to lay a foundation for the renewal of the American economy. They willadvance President Obamas vision of bringing the opportunities of broadband to all Americansand securing U.S. leadership in the new knowledge-based economy.

Documents

Executive Office of the President - Recovery Act Investments in Broadband - Embargoed Until Release on 12-17-2009